Asset Search Indicia For Divorce, Debt Collection & Bankruptcy
People don't typically think of the money laundering indicia when searching for hidden assets the subject of a: divorce; bankruptcy; commercial collection or other legal proceeding. Such indicia can however be effectively used as part of an asset search even in situations where there is no money laundering. In the United States, the indicia or red flags of money laundering are described at pages 19-23 and Appendix "F" of the Bank Secrecy Act / Anti-Money Laundering Examination Manual. They are also described in Money Laundering Prevention, A Money Services Business Guide, at pages 16-24.
Money laundering indicia are sometimes used outside of the United States. For example, India's Financial Intelligence Unit relies on "broad categories of reason for suspicion"; the Belgian Financial Intelligence Unit ("CTIF-CFI") uses Money Laundering Indicators; the Swiss Federal Banking Commission has the Schedule: Indicators of Money Laundering ; and the Asia / Pacific Group on Money Laundering also uses such a list. Recognizing the following money laundering indicia however, may lead to the discovery of assets concealed in a divorce, commercial collection or bankruptcy case:
- Domestic Or Foreign High-Risk Geographical Locations.
- Large Amounts Of Portable Valuable Commodities (Gold, Diamonds, etc.).
- False Invoicing In A Trade Or Business.
- Offshore Asset Protection Services.
- Offshore / Foreign Bank Accounts.
- Multiple Jurisdictions.
- Fraudulent Conveyances / Transfers.
- Shell Companies.
- Sham Trusts.
- Nominees.
- Bearer Instruments like Bearer Shares.
- Informal Banking Systems, (Hawala, Hui Kuan, etc.).
- Hiding Or Smuggling Cash.
- Offshore Credit Cards.
- Gambling Activities.
- Misuse Of Businesses (i.e. Commingling Personal With Business Assets).
- Structuring Bank Deposits, (a.k.a. "Smurfing").
(Edited 2/15/09)
Copyright 2007 Fred L. Abrams
